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Carter / New College Aid Program / Federal Loan Defaults #256722

CBS Evening News for Tuesday, Feb 07, 1978
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(Studio) President Carter's plans to propose new program of federal aid to college students, and possibly head off move in Congress to grant tax deductions for tuition in process, reported Deficiencies and inefficiencies in present loan program described.
REPORTER: Walter Cronkite

(DC) Problems in federal loan programs of collections, student defaults and federal bank regulators' charges that loan agreements violate Truth in Lending and Fair Credit laws detailed. Department of Health, Education and Welfare reports on collection efforts noted; schools mentioned are University of California at Berkeley and Indiana University and program in DC. Background of federal guaranteed loan programs' troubles given. [HEW deputy commissioner of education Leo KORNFELD - says major problem in getting loans repayed is lack of students recing. letter from government informing them of money still owed. Says it's not case of having generation of crooks who don't want to pay government] Errors discovered last year in HEW files on loans detailed. [KORNFELD - notes concern that must be had if even names and addresses turn up wrong in files.] Students' complaints about lack of information on taking out loan cited. [National Student Edward Fund spokesperson Peter COYE - thinks there's evidence showing insts. have pressured students to take loans and not provided adequate cnsling. with regard to loans.] Problems in loan defaults due to high pressure from trade and correspondence school enterprises reported Carter administration Department of Health, Education and Welfare officials' stated hopes of setting system straight and recovering loans outlined. Cost of defaulted loans to government so far noted.
REPORTER: Robert Schakne

Cronkite, Walter;
Schakne, Robert

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